Bridgestone Americas, Inc. says it will issue a $1.1 billion sustainability-linked credit facility.
Bridgestone partnered with bank SMBC to execute this credit facility. The financing features a sustainability-linked pricing adjustment mechanism that adjusts interest rate based on the environmental, social and governance (ESG) risk rating of Bridgestone, as determined by Sustainalytics, as well as by the ESG rating of FTSE Russell, both independent providers of environmental, social and governance ratings.
As Bridgestone sustainability ratings improve, borrowing costs will be reduced. The sustainability mechanism was structured in accordance with the sustainability-linked loan principles promulgated by the syndicated loan market industry associations.
